Economics: Bankruptcy

As the economy is shut down, we saw that the Federal Reserve and Congress worked to curb the damage, but the pattern is set. One principle of economics is bankruptcy, which occurs when businesses or individuals cannot make payments on debt and turn to the courts for relief. Because neither the fed or congress is able to provide a perfect solution, the first ripple in the economy is unemployment and the next is bankruptcy. This video will share basic information on what bankruptcy means and what the continuing efforts of the Fed will seek to accomplish.